Sonic Automotive Reports Parts and Service Gross Profit Up 1.7%

CHARLOTTE, N.C. — Sonic Automotive, Inc. reported 2012 third quarter adjusted earnings from continuing operations of $23.1 million for a 14.9% increase over the prior year results. Adjusted earnings from continuing operations per diluted share increased 17.6% to $0.40 compared to $0.34 in the prior year quarter. Adjusted results exclude a pre-tax charge of approximately $18.5 million, or $0.19 per diluted share, related to costs associated with retiring its outstanding 5.0% Convertible Senior Notes due 2029 (“5% Notes”).

Parts and Service gross profit up 1.7%, up 3.3% when adjusted for selling days

SG&A to gross profit % improved to 77.6% from 77.9% in the prior year quarter

B. Scott Smith, the Company’s President, noted, “We are pleased with our performance in the third quarter. Our operating performance stayed on track while we eliminated the last remnant of debt associated with our debt restructuring activities in 2009. We believe we have positioned the company for continued success by eliminating a significant ownership dilution risk through repurchasing the remaining 5% Notes during the quarter. This strategic action has simplified our capital structure and improved our debt profile by pushing our earliest public debt maturity back out to 2018.”

The Company’s EVP of Operations, Jeff Dyke, commented, “Our quarterly new retail vehicle unit volume of 33,737 units is the second highest level our complement of stores has ever achieved. The record occurred in the third quarter of 2006 when the quarterly SAAR averaged 16.6 million units compared to the current SAAR of 14.5 million units. We would like to thank our customers, our manufacturer partners and our associates for working together to help us achieve this performance. All the while, we were able to operate efficiently by controlling costs as evidenced by a 30 bps improvement in our SG&A to gross percentage to 77.6% from the prior year quarter. We continue to leverage technology and data to improve our customers’ experience in our stores and create value. For example, our new SIMS (Sonic Inventory Management System) and Retail Trade Center Process will completely revolutionize the way we manage, price and retail inventory across our stores. We anticipate completing the roll out of these systems in February of 2013 with the full benefits of the systems yielding results in the second quarter of 2013. We believe this will be another catalyst in driving our pre-owned performance in 2013.”

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.

Included herein are forward-looking statements, including statements with respect to anticipated growth in used vehicle sales, and future success and impacts from the implementation of our strategic initiatives. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management’s view, including without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company’s annual report on Form 10-K for the year ending December 31, 2011 and quarterly report on Form 10-Q for the period ended June 30, 2012. The Company does not undertake any obligation to update forward-looking information.